{"id":2986,"date":"2020-09-14T08:41:00","date_gmt":"2020-09-14T07:41:00","guid":{"rendered":"https:\/\/www.international-logistics-group.com\/uk-en\/?p=2986"},"modified":"2026-01-12T17:42:53","modified_gmt":"2026-01-12T17:42:53","slug":"are-you-ready-for-a-no-deal-brexit","status":"publish","type":"post","link":"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/are-you-ready-for-a-no-deal-brexit-2986\/","title":{"rendered":"Are You Ready for a No-Deal Brexit?"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull has-white-ter-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-cover is-light has-custom-content-position is-position-top-left alignfull p-0 image-50 image-right\" style=\"min-height:35rem;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-0 has-background-dim\"><\/span><img decoding=\"async\" width=\"1500\" height=\"1000\" class=\"wp-block-cover__image-background wp-image-1537\" alt=\"lorries-parked-at-depot\" src=\"https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2021\/11\/lorries-parked-at-depot.jpg\" style=\"object-position:29% 75%\" data-object-fit=\"cover\" data-object-position=\"29% 75%\" srcset=\"https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2021\/11\/lorries-parked-at-depot.jpg 1500w, https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2021\/11\/lorries-parked-at-depot-300x200.jpg 300w, https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2021\/11\/lorries-parked-at-depot-1024x683.jpg 1024w, https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2021\/11\/lorries-parked-at-depot-768x512.jpg 768w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><div class=\"wp-block-cover__inner-container is-layout-flow wp-block-cover-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column pr-6 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<div class=\"post-banner-content\">\n    <p class=\"post-banner-content__author\"><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/author\/sclifford\/\" class=\"author__avatar\" rel=\"author\"><img alt='ILG Author Simon Clifford' src='https:\/\/secure.gravatar.com\/avatar\/256b12dfc78709ec3711a30ba8087541c3291845305422452dfe82c6f3c07c6e?s=32&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/256b12dfc78709ec3711a30ba8087541c3291845305422452dfe82c6f3c07c6e?s=64&#038;d=mm&#038;r=g 2x' class='avatar avatar-32 photo' height='32' width='32' \/><\/a><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/author\/sclifford\/\" class=\"author__name\" rel=\"author\">Simon Clifford<\/a><span class=\"author__separator\"><\/span><span class=\"post-banner-content__date\">14 Sep 2020<\/span><\/p>\n    <h1 class=\"post-banner-content__title\">Are You Ready for a No-Deal Brexit?<\/h1>\n<\/div>\n\n\n<p>On Thursday 10th September, we hosted our first webinar, tackling the main areas of concern as we approach that 31 December watershed. With hopes of a deal being struck by then looking increasingly forlorn, the Government has set a date of 15 October to complete talks, in order to leave time for businesses to prepare their supply chain for the changes to come.<\/p>\n\n\n\n<p><strong>The question is, what will those changes be?<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-top pt-5 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-top pb-5 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:90%\">\n<p>A poll held among webinar attendees revealed that the two most pressing concerns are delays in the movement of goods and increases in taxes and tariffs on <a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/key-considerations-when-importing-stock-2393\/\">imports<\/a>. With a panel of Brexit specialists selected for their expertise in supply chain, VAT and Customs, our aim was to offer some valuable advice and guidance on mitigating these areas of risk.<\/p>\n\n\n\n<p>The webinar was hosted by Tom Ashley, CEO, ILG, and Tom was joined by a panel comprising: Simon Dixon, CEO and Founder, <a href=\"https:\/\/hatmill.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Hatmill<\/a>; Mark Ellis, Indirect Tax Partner, <a href=\"https:\/\/www.bdo.co.uk\/en-gb\/home\" target=\"_blank\" rel=\"noreferrer noopener\">BDO<\/a>; James Colson, Astrazeneca Global Key Account Director, <a href=\"https:\/\/www.yusen-logistics.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yusen Logistics<\/a>; and Sharon Murrell, Logistics &amp; Compliance Manager, Yusen Logistics.<\/p>\n\n\n\n<p>You can watch a recording of the full webinar below<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-vimeo wp-block-embed-vimeo wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Brexit Webinar 10th September 2020\" src=\"https:\/\/player.vimeo.com\/video\/660886493?h=96bad7ed10&amp;dnt=1&amp;app_id=122963\" width=\"500\" height=\"281\" frameborder=\"0\" allow=\"autoplay; fullscreen; picture-in-picture; clipboard-write; encrypted-media; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Below is a summary of the main topics discussed<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"protecting-your-supply-chainsimon-dixon-hatmill\">Protecting your supply chain<br>Simon Dixon, Hatmill<\/h3>\n\n\n\n<p>It\u2019s important for businesses to recognise that they are one step in a long chain. Even if you manufacture and sell your products within the UK, there will be parts of your supply chain that are <a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/they-think-its-all-dover-are-you-prepared-for-when-the-brexit-whistle-blows-2915\/\">affected by Brexit<\/a>. It\u2019s important to have a clear understanding of the risks and where they lie.<\/p>\n\n\n\n<p>Map all the touchpoints in your end-to-end supply chain that are likely to be affected. Include your suppliers in this exercise. As you go through your processes, from purchasing to processing to selling to dispatch, identify the risks. Eg disruptions to supply, pressure on cash flow, volatility in demand or higher freight costs.<\/p>\n\n\n\n<p>Create several future scenarios to predict what could happen and how you might be able to mitigate against it. Test those scenarios against your current operation. Stockpiling, for example, could be a tactic, but it\u2019s only a short-term one. Test each option rigorously to prepare the best strategy for your business. Then, if you can, repeat this process for your customers, suppliers and competitors. The more you can predict and prepare for your whole supply chain, the better placed you\u2019ll be.<\/p>\n\n\n\n<p>And with customers likely to be doing the same and researching their options, the volatility in demand will throw up opportunities for those who are best prepared. So treat the changes as a project \u2013 not business as usual. Have a plan, devote resources to it and follow the cycle of Plan-Do-Review.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"multiple-stock-locations\">Multiple stock locations?<\/h4>\n\n\n\n<p>One option is to split stock between the UK and EU. Simon offers this advice:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Really understand your range, channels and customer base and ask yourself whether two sites is an appropriate strategy.<\/li>\n\n\n\n<li>Do you want those sites to be mirror images of each other or should you use one for fast moving goods and the other for slower moving stock?<\/li>\n\n\n\n<li>Be careful to control what&#8217;s being purchased for the two sites. Buyers tend to regard an increase in space as an invitation to buy more.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"getting-smart-with-your-vatmark-ellis-bdo\">Getting smart with your VAT<br>Mark Ellis, BDO<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"exports-to-the-eu\">Exports to the EU<\/h4>\n\n\n\n<p>Each EU country has its own VAT system and its own VAT rates: https:\/\/ec.europa.eu\/taxation_customs\/vat-rates_en \u2013 you should now (i) calculate what rate of VAT will apply to the import of your goods into that country and (ii) what the rules are there for (a) paying the import VAT and (b) subsequently reclaiming it<\/p>\n\n\n\n<p>In order to reclaim EU import VAT, you may need to register for VAT in the EU country of import and file local VAT returns there \u2013 apply now to get registered for VAT there in time for 1 January 2021<\/p>\n\n\n\n<p>Some EU countries (eg Belgium) may require the appointment of a local fiscal representative in their country before allowing a non-EU business (ie a UK business from 1 January 2021) to register for VAT locally \u2013 where necessary, appoint a local fiscal representative now in order to obtain\/maintain an EU country VAT registration<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"imports-into-the-uk\">Imports into the UK<\/h4>\n\n\n\n<p>From 1 January 2021, UK import VAT can be paid to, and reclaimed from, HMRC via the same VAT return form under a scheme called <strong><a href=\"https:\/\/www.gov.uk\/guidance\/check-when-you-can-account-for-import-vat-on-your-vat-return\" target=\"_blank\" rel=\"noreferrer noopener\">postponed import VAT accounting<\/a><\/strong> \u2013 you should revise cashflow forecasts accordingly and understand the impact on the level of your UK import VAT\/Customs Duty deferment guarantee (which will only need to cover UK Customs Duty in future).<\/p>\n\n\n\n<p>On 11 April 2019, HMRC issued a <strong><a href=\"https:\/\/www.gov.uk\/government\/publications\/revenue-and-customs-brief-2-2019-vat-import-vat-deducted-as-input-tax-by-non-owners\/revenue-and-customs-brief-2-2019-vat-import-vat-deducted-as-input-tax-by-non-owners\" target=\"_blank\" rel=\"noreferrer noopener\">statement<\/a><\/strong> that, with effect from 15 July 2019, UK import VAT paid can only be reclaimed by the \u2018importer of record\u2019 if they held \u2018legal title\u2019 to the goods (ie the \u2018importer of record\u2019 was also the \u2018owner\u2019 of the goods) at the time of their import into the UK \u2013 this HMRC edict will affect even more UK businesses from 1 January 2021.<\/p>\n\n\n\n<p>On 20 July 2020, HMRC issued a <strong><a href=\"https:\/\/www.gov.uk\/government\/publications\/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021\/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021\" target=\"_blank\" rel=\"noreferrer noopener\">statement<\/a><\/strong> that, from 1 January 2021, import of goods &lt;\u00a3135 in value will attract \u2018normal\u2019 UK VAT, not import VAT, including goods &lt;\u00a315 in value (which can be imported VAT-free at present).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"managing-the-new-customs-rulessharon-murrell-and-james-colson-yusen-logistics\">Managing the new Customs rules<br>Sharon Murrell and James Colson, Yusen Logistics<\/h3>\n\n\n\n<p>From 1st January 2021, new border controls will be implemented for Imports &amp; Exports between the EU and UK and the UK Global Tariff will be in place.<\/p>\n\n\n\n<p>Exports will be in line with Rest of World requirements from the 1st January and will require Customs Declarations and Safety &amp; Security Declarations.<\/p>\n\n\n\n<p>Imports will be introduced in a 3 phased approach.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"phase-1-from-jan-2021\">Phase 1 &#8211; from Jan 2021<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All Imports from clothing to electronics will need to prepare for basic Customs requirements, such as keeping sufficient records of imported goods. Importers will have up to six months to submit a declaration to HMRC paying the duty and VAT due. Subject to approvals.<\/li>\n\n\n\n<li>Controlled goods (such as excise products) will require full standard declaration at time of import. Any inspections required to be completed will be done at the point of destination rather than the frontier.<\/li>\n\n\n\n<li>Traders importing or exporting using the Common Transit will need to follow the Transit procedures as these will not be introduced in stages.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"phase-2-from-april-2021\">Phase 2 &#8211; from April 2021<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All products from animal origin will require pre-notification and relevant health certificates (48 hours notice). Any inspections will be completed at point of destination.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"phase-3-from-july-2021\">Phase 3 &#8211; from July 2021<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Traders will be required to complete full declarations (or simplified if authorised) at time of import.<\/li>\n<\/ul>\n\n\n\n<p>All this will require a new border infrastructure, some of which will be located inland.<\/p>\n\n\n\n<p>Additional grant funding of \u00a350million will be made available to encourage the expansion of the Customs Intermediary Sector.<\/p>\n\n\n\n<p>For details of these grants, click <strong><a href=\"https:\/\/www.gov.uk\/guidance\/grants-for-businesses-that-complete-customs-declarations\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-you-should-do-now\">What you should do now<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consider how you will complete your customs formalities from 1st January, will you be completing yourselves or will you require support from a Customs intermediary?<\/li>\n\n\n\n<li>For non-controlled goods, decide whether you will defer declarations and duty payments for six months from import date (obtain the necessary authorisations or intermediary to do this) or complete full declarations.<\/li>\n\n\n\n<li>Decide how you will account for UK VAT. If you are UK registered, will you complete postponed VAT accounting? If using deferred declarations, you will only be able to use postponed VAT accounting<\/li>\n\n\n\n<li>Review your trading terms with suppliers and customers. Know who is responsible for customs declarations at origin and destination.<\/li>\n\n\n\n<li>Check your commodity codes and duty liability<\/li>\n\n\n\n<li>Check documentation requirements<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"continuing-to-delivertom-ashley-ilg\">Continuing to deliver<br>Tom Ashley, ILG<\/h3>\n\n\n\n<p>Much of the legislation around Brexit is complicated and riddled with jargon. ILG and the Yusen family are here to support our clients through the new customs regulations and provide solutions to the supply chain challenges.<\/p>\n\n\n\n<p>We have been busy researching the most optimum location for ILG to open our own facility to serve Continental Europe and have narrowed down the options to Poland and Czech Republic. We have based our search on the following considerations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Labour rates \u2013 are they competitive?<\/li>\n\n\n\n<li>Flexible skilled employee availability \u2013 could we scale up quickly?<\/li>\n\n\n\n<li>Access to carrier hubs and costs \u2013 do they provide a good range of options?<\/li>\n\n\n\n<li>Facility costs and standards \u2013 do they meet the ILG service standards?<\/li>\n<\/ul>\n\n\n\n<p>Yusen Logistics has facilities in both countries, which we can lean on as required. We will be making our decision on 23 October, so before they we want to hear from you about your requirements. Ultimately, client demand will drive the location and size of the site we choose.<\/p>\n\n\n\n<p>If you have any questions or concerns about Brexit, please call ILG and one of our team will happily talk you through the steps you should take. We are ready to help all our clients through this period of transition and establish a smooth, efficient import\/export process as quickly as possible.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/ready-for-brexit-read-our-checklist-3015\/\">Read our Brexit checklist to ensure your business is prepared.<\/a><\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group mb-2 p-5 pb-2 has-blue-light-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h3 class=\"wp-block-heading\" id=\"your-details\">Contact Us<\/h3>\n\n\n<script>\n    hbspt.forms.create({\n        region: \"eu1\",\n        portalId: \"25578978\",\n        formId: \"105eb6ef-6de3-4ea7-9870-a2a5e1091024\"\n    });\n<\/script>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On Thursday 10th September, we hosted our first webinar, tackling the main areas of concern as we approach that 31 December watershed.<\/p>\n","protected":false},"author":39,"featured_media":1537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20,40,100],"tags":[],"class_list":["post-2986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-tips","category-brexit-logistics","category-eu-fulfilment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are You Ready For A No-Deal Brexit? | ILG UK<\/title>\n<meta name=\"description\" content=\"Part of our series on preparing your fulfilment and logistics for the changes and impact of Brexit. 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